Daydream Dragons are the hosts of daydreams and fantasies. They spend the majority of their time sitting on clouds, dropping daydreams down into the minds of people passing by. Humans who live near Daydream Dragons must be especially careful not to let their thoughts wander, or they could end up spending hours or even days in a trance-like waking dream state.

Dragons are highly-intelligent reptilian creatures that—from a human perspective, at least—appear to live forever. Many different varieties of dragon exist, each with their own unique qualities, habitats, and behavior. Adolescence in dragons is usually marked by the growth of a hatchling’s wings, although not all breeds of dragons grow wings and some breeds have other traits that indicate the beginning of maturation. In Galsreim, dragons and humans coexist peacefully.

From atop his cloud, Nebelish Grenn enjoys coming up with new fantasies and daydreams to give to others.  He is perhaps the most harmless of the dragons in the clan, preferring to stay on his cloud rather than get involved with any fighting that might occur.  When they need a break from reality for a while, many of the clan will come to him for a nice, distracting daydream.  He wants to be friends with everyone, especially Dustil Aeschere, whom he believes would be a much happier dragon if he would just let himself enjoy a good fantasy.  To that end, he is often seen stalking Dustil, attempting to drop daydreams on him, but Dustil always chases him away.  Some of the dragons are convinced Nebelish is caught up in a fantasy of his own when he stalks Dustil.